What is Working Capital Loan?
Working Capital is the backbone of all small businesses and is used to cover daily operating business expenses. It is a symbolic scale used to measure a company’s liquidity, overall health, and short-term financial efficiency. Cash flow is a necessity used to cover short term inventory, purchases, payroll, and many other day-to-day operations. You can calculate your company’s working capital by subtracting your current liabilities from current assets.
Getting a working capital loan from a traditional lender is a stringent process. Usually, traditional lenders ask for a good credit score, extensive guarantee, collateral, and other nitty-gritty. This is not the case with Alternative lenders.
Apply for a working capital loan at Merchant Advisors, and carry out daily operations with ease. Increase your annual revenue and take your business to other heights.
Types of Working Capital Loans
We provide multiple working capital loans, browse through all of them before making a final decision.
Here you only pay interest on the amount overdrawn –which is 1-2% above the bank prime rate, usually.
These loans are secured and have a fixed rate of interest and payment period. They come with a repayment period of 12 months. With a good credit history, you can easily get a short term loan without collateral.
Working capital loans can be obtained from personal resources such as investments from loved ones, and home equity loans. These loans are best for start-ups and businesses with no or little money.
These are based on the confirmed sales order value of your company. If you don’t have a track record for paying debts, getting these types of loans can be challenging.
These are similar to accounts receivable loans, with the only difference –the value of these loans is based on future credit card receipts. Factoring or advances are most suitable for businesses that accept credit cards as a mode of payment.
These loans are provided by potential suppliers. They offer a trade credit facility if you place large orders from them. Before approving such loans, trade creditors usually do a careful analysis of your company’s credit history.
Small Business Working Capital Loans
In order to successfully lead in today's fast-paced global economy, small business owners should use their accessible cash to reinvest in their daily business operations. With a working capital loan from Merchant Advisors, you can do much more:
- Increase your business operations,
- Investing in advertising,
- Make business expansion,
- Make tax payments,
- Improving your current business,
- Pay for payroll & outstanding debt
Merchant Advisors provides working capital ranging from $5,000 to $500,000, with ease. The loan can be a perfect solution for your small business.
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